Freshworks Plans Torii Acquisition to Help Businesses Control AI and Software Costs

As businesses adopt more artificial intelligence (AI) tools and cloud-based software, keeping track of technology spending is becoming increasingly difficult. Freshworks is looking to address this challenge through a proposed acquisition of Torii, a platform that helps companies manage software applications, licences, access and spending.

Freshworks has signed a definitive agreement to acquire Torii, with the aim of expanding its Freshservice platform into software spend management and AI governance. The move is expected to give businesses a clearer picture of the technology they use, who uses it and how much it costs.

Bringing Software and AI Spending Under One Roof

Many organisations rely on dozens of software subscriptions and AI-powered applications across different departments. However, IT, finance and security teams do not always have access to the same information, making it harder to monitor usage, control budgets and identify potential risks.

AI tools add another layer of complexity. Some services charge customers according to consumption rather than a fixed subscription fee. As usage increases, businesses can find it difficult to predict expenses or determine which teams are driving the costs.

The planned integration of Torii with Freshservice is intended to address these gaps by bringing software inventory, licence management, user identities and AI usage information into a more unified system.

This could help businesses identify unused subscriptions, improve spending decisions and reduce security concerns linked to applications operating without proper oversight.

Tracking AI Usage and Controlling Costs

Torii provides tools that help organisations discover the software applications and AI services being used across their operations. Its capabilities also cover licence allocation, access permissions and expenditure monitoring.

One of its notable features is the ability to track AI consumption at the token level. This allows businesses to examine usage more closely, connect expenditure to individual employees or teams, and estimate future costs.

With these capabilities, companies could allocate AI expenses to the departments responsible for them, establish usage limits and spot unexpected increases before they become larger budget problems.

The combined offering is also intended to help employees gain access to the software they need more efficiently, while reducing the volume of routine support requests handled by IT teams.

Freshworks and Torii Aim to Improve IT Visibility

Freshworks CEO and President Dennis Woodside said the agreement would extend Freshservice's existing technology oversight capabilities to software and AI spending.

The objective is to give IT and finance teams a shared view of what is running across the organisation, who is using it and what it costs. This could reduce dependence on manually maintained spreadsheets and make collaboration between the two departments easier.

Torii CEO Uri Haramati also highlighted the visibility gap between IT, finance and security teams. According to him, each department often works with only part of the information needed to understand software and AI usage.

Bringing these capabilities together within Freshservice is intended to provide a more consistent view of technology operations without forcing businesses to rely on another disconnected management tool.

Torii's Background and Enterprise Customers

Founded in 2017, Torii focuses on helping businesses manage their software environments, including applications, licences, user access and AI-related expenditure.

Its customer base includes organisations such as Hearst Corporation, Groupon and Koch Inc. The company was also recognised as a Leader in the 2026 Gartner Magic Quadrant for SaaS Management Platforms, according to the acquisition announcement.

Its expertise in software management is expected to complement Freshservice, Freshworks' IT service management platform.

When Is the Acquisition Expected to Close?

Freshworks expects the transaction to close during the fourth quarter of its 2026 fiscal year, subject to customary closing conditions.

The companies have not disclosed the financial terms of the deal in their announcement.

The acquisition reflects a wider shift in enterprise technology management. As AI tools become part of everyday business operations, companies need to understand not only which applications they use but also how much those applications consume, what they cost and whether access is properly managed.

By combining Freshservice with Torii's software management capabilities, Freshworks aims to give organisations greater control over their technology spending and a clearer way to manage AI adoption as it expands.